BEATPORT OFFICIALLY GOES UP FOR SALE, SEVERAL BUYERS INTERESTED
SFX has officially begun the process of auctioning off online store Beatport, following the service’s loss of over $5 million in revenue and a prior statement that initial negotiations would begin in April.
Earlier this month, the parent company revealed that in order to quell some of their heavy financial decline over the last few years, they would begin speaking with 24 independent parties interested in purchasing Beatport. The primary bids, they said, would be lodged by April 28, with the auction itself taking place on May 3. SFX will accept bids of $250,000 and above, with a final winner announced on May 5.
Today we’ve received the document itself, which outlines the specific, legal circumstances around the auction as well as the developments that led to SFX’s bankruptcy declaration. The document reports that Beatport and all of its assets will be officially up for sale in the coming weeks.
“Specifically with respect to the Beatport Assets, Moelis and Beatport have been in contact with approximately 18 potential buyers, including certain potential buyers that expressed interest during the Special Committee Engagement. 5 new non-disclosure agreements were executed, and there has been 1 preliminary indication of interest.”
“While the Beatport Assets are valuable to the SFX enterprise, given SFX’s current financial condition, SFX cannot afford to make additional investments in Beatport as may be needed in the future, and therefore, has decided to sell the Beatport Assets.”
Read the full, 52-page document below.